Transcorp Hotels Plc has posted a strong financial performance for the first quarter ended March 31, 2025, following a robust operational execution and effective strategic initiatives despite Nigeria’s challenging macroeconomic landscape.
The hospitality subsidiary of Transnational Corporation Plc reported a 52 percent year-on-year increase in revenue from ₦13.8 billion in Q1 2024 to ₦21.0 billion in Q1 2025.
This growth was underpinned by higher occupancy rates, increased event hosting and a broader range of service offerings following the recent addition of a 5000-capacity event space.
The company’s cost management strategies also yielded notable improvements. Gross profit margin expanded to 75 percent in Q1 2025, up from 72 percent in the same period last year.
Cost of sales margin declined from 28 percent to 25 percent on operational efficiency gains amid elevated inflation and rising input costs across Nigeria’s hospitality sector.
Gross profit rose by 59.6 percent year-on-year to ₦15.84 billion compared to ₦9.92 billion recorded in Q1 2024.
Profit before tax stood at ₦6.16 billion, a slight increase from ₦6.09 billion recorded in the prior year despite the absence of an exceptional ₦2.9 billion foreign exchange gain that positively impacted 2024’s first quarter results.
This performance signals the resilience of Transcorp Hotels’ core business operations and highlights the underlying strength of its revenue generation capabilities.
It also reflects disciplined cost control, strategic asset expansion and focused execution.
Uzo Oshogwe, Managing Director and Chief Executive Officer of Transcorp Hotels Plc, attributed the strong results to the company’s strategic drive for growth, enhanced asset base and relentless focus on delivering quality hospitality experiences.
She explained that the recent commissioning of the Transcorp Centre complements the existing portfolio anchored by the Transcorp Hilton Abuja and positions the company to deepen its leadership within Africa’s hospitality industry.
Looking ahead, Transcorp Hotels is well-positioned to leverage its expanded infrastructure and established market presence to capture further growth opportunities in Nigeria’s recovering tourism and business travel sectors.
The company’s ability to sustain profitability without reliance on extraordinary income items reinforces its long-term value proposition to shareholders.
